- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If a project owner requires a performance bond, send us the contract or notice of award and the bond form. We’ll check the amount and form and tell you what the surety needs for a quote.
A performance bond is a surety bond that guarantees a contractor will perform a construction contract according to its terms. The project owner is the obligee, and the surety backs the contractor’s promise to finish the work.
Public owners often require one. Under the federal Miller Act, performance and payment bonds are required for federal construction contracts exceeding $150,000, with limited waivers, according to Federal Acquisition Regulation 28.102-1. States and local governments have their own rules for public work.
Private owners, lenders, and general contractors can require performance bonds too. The contract and bid documents tell you what you need.
They do different jobs. A performance bond is about completing the contract. A payment bond is about paying covered subcontractors, laborers, and suppliers. Many contracts require both.
See Payment Bonds for how the payment side works.
The surety is underwriting the contractor and the job, not only selling a form. It looks at whether you have the ability, the financial strength, and the track record to complete the work.
Depending on the size of the request, that can include credit, financial statements, working capital, completed-job history, work in progress, and the specific contract.
Performance bonds are generally priced as a rate applied to the contract amount, not as the full bond amount. The rate depends on the contractor, the project, the bond requirements, and the surety.
Larger or more difficult accounts can need more underwriting before a firm price can be given. We cannot quote a rate until we see the contract and your information.
Usually. Credit is one part of underwriting. Larger bonds also look at company financials, work in progress, and experience.
If your credit or financials are not perfect, tell us up front. The options depend on the bond size, the contractor’s overall position, and the surety markets available.
Send us what you have. The most useful items are:
It depends. A smaller performance bond with a complete file can move more quickly. A new account, a larger job, an unusual form, or a request that needs financial statements can take longer.
Send the contract as soon as you have it, not when the owner’s deadline is a day away.
If this is not the bond you were asked for, these pages may help.
Yes for public work. Each state and many local governments set their own rules, thresholds, and forms for public construction, and federal work follows federal rules. Do not assume a bond form for one owner works for another.
Send us the contract, notice of award, or bond form. We’ll tell you what the surety needs next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
